France increases the malus for 2021 with a maximum tax raised to €40,000
It will increase even more in 2022
Every year, the French government revises the bonus-malus scale. With the massive arrival of electric and plug-in hybrid cars, the system was beginning to ruin the country, which then had to pay substantial aid to buyers. The new scale confirmed for the year 2021 will strongly limit the damage.
The malus becomes even more severe with a maximum amount that increases significantly and a trigger threshold that is lowered again. Any new car emitting 131 g of CO2/km bought from 1st January 2021 will have to pay a tax of €50 (£45.3/$58.6). The amount of this tax will then rise exponentially for each additional gram.
For example, for a vehicle emitting 180 g of CO2/km, a penalty of €6,375 (£5,771/$7,467) will be charged. The maximum amount, which is reached from 225 g CO2/km, is literally devastating with...€40,000 (£36,212/$46,854) to be added to the car's price! That's enough to double the cost of some sports cars.
And for 2022, the maximum amount will be even tougher, rising from €40,000 to €50,000 (£45,273/$58,568). On the bonus side, the aid for an electric vehicle will come back to €6,000 (£5,433/$7,029) in 2021 compared to €7,000 (£6,338/$8,201) today. The bonus for plug-in hybrids will be halved, with aid of €1,000 (£905/$1,172) instead of the current €2,000 (£1,811/$2,343).
Photo credits Renault